Access To Medical
Records Act 1988
The terms of this Act require
an insurance company to obtain prior written consent from an
individual before approaching any medical practitioner for a
medical report pertaining to them. The individual has certain
other rights including the right (subject to some restrictions)
to see any report before it is submitted by the doctor Back
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Accidental Death Benefit
A provision that may be added to a life insurance policy
which provides payment of an additional benefit in the case
of death resulting from an accident. Back
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Accidental Death and Dismemberment
Loss of life or limbs through accident. Insurance against
such eventualities is generally available. Back
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Act of God
An accident or event which happens independently of human
intervention and due to natural causes such as storm earthquake
etc which no human foresight can provide against. Suggesting
that an event was an "act of God" may be a defence in English
law against a claim for liability since it may be held that
it could not have been foreseen or safeguarded against. Back
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Actively at Work
A clause in a group insurance policy that requires a new
member or one with an increase in cover, to be at work (or on
holiday - ie not absent due to sickness, industrial action,
etc) on the day of joining/day of increase. Back
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Activities of Daily Living
Everyday living functions and activities performed by individuals
without assistance. These functions include mobility, dressing,
personal hygiene and eating. The inability to undertake these
activities may be used in some circumstances to define disability
in insurance contracts. Back to
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Additional Drivers
Additional Premium On a motor insurance policy. This means
drivers other than you, the Proposer. (e.g. your husband or
wife).Back to top
Additional Premium (AP)
An additional premium is occasionally incurred for changes
to an insurance policy. (e.g. you may wish to add young drivers
to your policy). Back to top
Age of Car Discount
On some motor policies a discount on premium is given for
older cars. Back to top
Age of Driver Loads and Discounts
All motor policies are rated on the age of the youngest
driver. With most Insurers the ‘base rates’ (i.e.
the starting point for premiums) are set at 30 years of age.
Drivers under 30 attract premium loadings and drivers over 30
attract premium discounts. Loadings may also apply if the driver
has held a full UK licence for less than one year. This therefore
includes provisional license holders. Back
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Association of British Insurers (ABI)
The association of insurance companies, which operates in
Great Britain. The ABI regulate most Insurers and Independent
Intermediaries of which your insurance company may be one such
independent intermediary. This is also one of the bodies that
you may complain to if you are dissatisfied with any product
or service offered from this site. This is of course if satisfaction
has not been gained from your insurance company first. Back
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Claims Procedure
The procedure to go through when making a claim. Back
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Commercial Travelling
For use in connection with any business or trade that involves
buying or selling of any description. For example, a Company
Representative, Door-to-door salesperson or Insurance Agent.
If in doubt always check with your insurance company. Back
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Comprehensive Cover
On a motor insurance policy comprehensive cover insures
against any accident that you may have, whether your fault or
not. This includes damage caused to your car when it is unattended
such as a hit and run, or vandalism. Watch out though, claims
can result in loss of no claims discount. Just because it isn’t
your fault doesn’t mean that your bonus is safe. Check
before you claim. This also covers you for your legal liability
to third parties (including damage to their car or compensation
to them for injuries sustained if the accident was your fault).
In addition the cover should extend to fire damage to your vehicle
or any damage arising out of the theft or attempted theft of
your vehicle. Windscreen cover is usually included but check
to see what the excess is. Using Insurers preferred Windscreen
Suppliers may reduce your excess. Back
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Compulsory Excess
This is a mandatory amount deducted from any claim settlement
and represents your contribution to the claim cost. If you have
an excess of £50 and your claim is for £300, then
you will only receive £250 from your Insurer. If the accident
(in the event of a motor claim) was not your fault then you
may be able to recover this from the person to blame (third
party) or their Insurers. (See Uninsured losses). Back
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Convictions
Convictions subject to the Rehabilitation of Offenders Act
(ROOA) have to be declared to the Insurer otherwise your policy
cover could be voided. Any criminal convictions, including motoring
convictions, fixed penalties and pending convictions have to
be declared. Watch out for the ROOA as some convictions have
to be declared for up to 12 years. If in doubt declare the facts
– your Insurer will ignore it if it doesn’t apply
because they have to by law. Back to top
Cover
The protection offered by your insurance policy. Examples
on a motor insurance policy would be Comprehensive or Third
party fire and theft. Back to
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Cover Notes
A temporary document which acts as a certificate of insurance.
This meets the requirements of the Road Traffic Act (RTA). Back
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Credit Card Payments
Payments made using a credit card such as Access or Mastercard.
Back to top
Debit Card Payments
Payments made using a debit card such as Switch or Delta.
Back to top
Direct Debits
Payments made using a Direct Debit system where regular
payments are automatically taken from your bank account.Back
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Discounts
A discount is a reduction from the base rate due to a reduction
in a risk factor. An example of this would be a security discount
if you had a recognised alarm system. Back to top
Endorsements
(a) Any time you change your policy after first taking it
out, the document you receive from your insurer showing the
mid-term changes is called an endorsement.
(b) Another definition of endorsement is the penalty shown on
your driving licence following a motoring conviction. Back
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Excess
This is an amount deducted from any claim settlement and
represents your contribution to the claim cost. If you have
an excess of £50 and your claim is for £300, then
you will only receive £250 from your Insurer. If the accident
(in the event of a motor claim) was not your fault then you
may be able to recover this from the person to blame (third
party) or their Insurers. See Uninsured losses. An excess may
be voluntary or compulsory, and may apply only for certain types
of claims. Watch out for different excesses for different parts
of your policy. (e.g. a motor policy may have a basic £100
excess but the windscreen excess may only be £40. Also
there are compulsory additional excesses for young drivers;
so £100 excess for you may be increased to £250
for your son or daughter at college). Back
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Fees
These are administration fees, which are charged in the
event that customers support is needed. These are kept as low
as possible but are necessary to ensure that customers have
the widest choice possible. Back to top
Foreign Use
On a motor insurance policy this refers to when the vehicle
is used abroad. Watch out, as not all Insurers cover you whilst
abroad. Even if your insurance certificate states that it covers
you in the EC you may need to check. Sometimes the cover only
meets the minimum legal requirements of the country you are
visiting. You will still need to tell your Insurer to extend
the Comprehensive accidental damage cover on your car for the
time you are abroad. Back to top
Green Cards
This is the document you receive for the extension to an
insurance policy to provide cover when driving abroad. It is
coloured green and contains information regarding your cover
in several languages so that it can be understood when presented
to other drivers or police abroad. See Foreign Use. Back
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High Value Loading
Most motor policies assume a maximum value of £25,000.
When the vehicle is greater than this figure additional loadings
might apply. The Sum Insured should represent the current market
value of your car and should be reviewed at each renewal date.
See Sum Insured. Back to top
Insurance Ombudsman
This is the ombudsman for the insurance industry and to
whom all complaints should be addressed if no satisfaction has
been obtained from yourcompanyname or your Insurer. Please see
Complaints Procedure. Back to
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Insurance Premium Tax (IPT)
This is a tax which is payable on insurance policies taken
out or renewed since 1/10/94. The current rate of IPT is 5%.
Most premiums include ipt within the quotes but watch out for
the term “plus ipt”. Also note that travel policies
have a rate of ipt of 17.5% for individuals although businesses
only pay the standard rate of 5%. Also, ipt cannot be reclaimed
from the Inland Revenue in the same way as VAT can. Back
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Insured
You become the Insured ( the person in whose name the policy
is in) once you have started the policy cover. Before the cover
started you were the Proposer. Back
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Insurers
Insurers are the companies who take the financial risk when
you buy a policy and have to “pay out” in the event
of a valid claim; once they have received your premiums. They
are regulated by the Association of British Insurers and the
Dti (Department of Trade and Industry). Back
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Left Hand Drive Vehicles
Vehicles where the steering wheel is on the left, designed
for countries where people drive on the right. Back
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Legal Expenses Insurance
Legal Expenses Insurance is an option to meet legal and
recovery for your “uninsured losses” resulting from
an accident. For example, you may need to sue the Third Party
for recovery of your out of pocket excess. You may also have
had to hire a car or may need to obtain compensation for an
injury arising from an accident, which was not your fault. Such
things are not always covered under your Comprehensive policy.
A legal expenses policy to meet those legal costs is a must.
Back to top
Loads
A load is an increase on the base rate due to an increased
risk factor. An example of this would be if you had several
speeding convictions making you more risky than someone who
has always had a clean licence. Back
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Material Facts
A material fact is any piece of information that might influence
a reasonable underwriter in his or her assessment of the risk.
Such facts may not always result in negative treatment of your
policy but failure to disclose all information might void your
policy. Material facts may include things such as losses that
you have had which you may not have been covered for in the
past or perhaps a member of your household who has a criminal
conviction for theft. If in doubt, declare it up front and the
Insurer will tell you where you stand. The Customer Support
desk can always help if you have difficulties in obtaining cover.
If in doubt – shout! Back
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Modified Vehicles
All changes to a vehicle are considered to be modifications.
This includes things like replacement alloy wheels, bucket seats
and steering wheels as well as the more obvious changes such
as engine performance. Always declare the modifications in advance
of buying your policy or declare to your Insurer before going
ahead. The modifications may not always attract a loading in
premium but failure to declare them could result in the policy
being voided and you not receiving a full settlement of your
claim. Back to top
No Claims Discount (NCD)
No claims discount (sometimes called 'no claims bonus')
is calculated on a sliding scale, usually reaching a maximum
of around 60% after 4/5 years. A typical scale is as follows:
1 year 30%
2 years 40%
3 years 50%
4 years 60%
You will usually drop two years bonus if you have a claim. (e.g.
If you had 3 years bonus at your last renewal resulting in 50%
no claims discount and now you make a claim – then your
next renewal will show that you only have 30% no-claims discount,
having dropped two places in the above scale.
Watch out for protected no-claims bonus. Not all Insurers offer
the same deal. See Protected no-claims bonus.
No-quotes
Sometimes the system will say “No Quote” or “Refer”
when you apply for a quote. This could be due to your particular
circumstances where no Insurer wishes to offer you system produced
cover without talking to you in more depth. (e.g. 17 year old
driver with a ferrari). It could be that your needs are greater
than the system was designed to provide. Back
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Overnight Theft Loading
On a motor insurance policy this is an increase in premiums,
which may apply when overnight theft cover is required and you
are unable to meet policy conditions such as keeping the vehicle
garaged. Back to top
Physical Disabilities
You may be required to declare any disabilities or medical
conditions. Back to top
Policy
This the legally binding document which is the evidence
of the cover. You should be able to examine all the policy wordings.
You should check your policy carefully when you receive it and
if any amendments are required you must notify your insurer
before it is too late. There is no point checking the policy
after you have had a loss only to find that there is a negative
part that you weren’t expecting. Back
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Premium
This is the amount that you will pay which goes to your
insurer for the cover purchased. There may be additional costs
such as legal expenses, specialist additional products and administration
charges, all of which should be clearly highlighted. Back
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Proposer
The person taking out the insurance and completing the proposal
form. A policy is a legal contract between the Proposer and
the Insurer. You are a Proposer before the policy starts. Once
it starts you become the Insured. Back to top
Proposal Form
The proposal form is the basis of the contract. It is probably
the most important aspect of the cover process. This form may
be in written hard copy form or may be taken from the entered
details on the system. As insurance is an intangible product
whose price is based on the information provided by you then
any errors or non-disclosure of material facts can result in
the policy being voided. Check with your insurance company if
you have any difficulties or need advice. Also, if you know
of something, which the Insurer ought to know, but the proposal
form doesn’t ask that question, do not think that you do
not have to tell them. You have a legal duty to disclose all
facts. Back to top
Protected No Claims Discount
Once you have reached the dizzy heights of 4 years no claims
discount, you may be offered protected no-claims as an option.
This allows you, for a small additional premium, to obtain more
“lives”. This means that you are entitled to make
a claim or two without losing any of your no-claims discount
and dropping down the scale. See No-Claims Discount. Watch out
though because not all Insurer’s offerings are the same.
Some products allow two claims in a two year period whilst others
may be in a three or even five year period. Some schemes say
that after you have used your “lives” then you lose
all your bonus whilst others allow you to drop two years at
a time down the scale. Back to
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Return Premium
A refund of premium following cancellation of the policy
or changes, which reduce the risk such as removing a young driver.
Back to top
Road Traffic Act (RTA)
The Act of Parliament which stipulates what is required
by law. All motor insurance certificates and cover-notes are
issued in accordance with the RTA. The RTA does not permit cover-notes
or certificates of motor insurance to be backdated. You must
therefore notify your insurer in advance of any changes. A typical
example of this is where you wish to test drive a new car where
you must notify your Insurer of the registration details first
so that cover can be arranged. Also note however, that many
Insurers do not like to offer this cover so you may wish to
ask the vendor of the car to add you to their policy for the
day. Back to top
Third Party
A policy is a legal contract to which you are the first
party and the Insurer is the second party. Any other person
with whom you have been involved in an accident is generally
referred to as the Third Party. Back
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Third Party Fire and Theft Cover
On a motor insurance policy this covers you for your legal
liability to third parties (including damage to their car or
compensation to them for injuries sustained if the accident
was your fault). In addition the cover extends to fire damage
to your vehicle or any damage arising out of the theft or attempted
theft of your vehicle. Please note that usually the theft of
the contents of your vehicle are not covered under this type
of cover unless the entire vehicle and it’s contents have
been removed. Even then there can be some limitations within
the policy, so please check. Back
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Third Party Only Cover
On a motor insurance policy this covers you for your legal
liability to third parties (including damage to their car or
compensation to them for injuries sustained if the accident
was your fault). It also covers passenger liability but there
is no cover for damage to your car from any cause whatsoever.
This complies with the minimum legal requirements of the Road
Traffic Act but very little more.Back to top
Vehicle Details
The information describing exactly which vehicle you own (eg.
the make, model and engine size etc) Back
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Voluntary Excess
This is a voluntary amount deducted from any claim settlement
and represents your contribution to the claim cost and is in
addition to any Compulsory Excess. If you have an excess of
£50 and your claim is for £300, then you will only
receive £250 from your Insurer. If the accident (in the
event of a motor claim) was not your fault then you may be able
to recover this from the person to blame (third party) or their
Insurers. See Uninsured losses. Back
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Waiver
An agreement attached to the policy and accepted by the
insured, to eliminate a specified pre-existing physical condition
or specified hazard. Back to top
Windscreen Cover
Windscreens are usually only covered under Comprehensive
Private car policies and are subject to different excesses than
the main policy. Damaged windscreens (i.e. scratched) may not
have any excess if repaired by an approved Insurers Windscreen
Company. Watch out for Commercial vehicles/vans as windscreens
are not always covered but when are can be subject to the same
excess as the main policy, rendering the cover useless. Windscreen
claims rarely affect the no claims bonus. Check with your insurer
before making your claim.Back to top
Written Premiums
The total premiums on all policies written by an insurer
during a specified period of time. Back
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